Starbucks Corporation (SBUX)vsThe Wendy’s Co (WEN)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
WEN
The Wendy’s Co
$7.14
+0.56%
CONSUMER CYCLICAL · Cap: $1.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 1632% more annual revenue ($37.70B vs $2.18B). WEN leads profitability with a 7.6% profit margin vs 3.6%. WEN appears more attractively valued with a PEG of 1.20. WEN earns a higher WallStSmart Score of 52/100 (C-).
SBUX
Hold39
out of 100
Grade: F
WEN
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Margin of Safety
-36.3%
Fair Value
$5.78
Current Price
$7.14
$1.36 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 88 in profit
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Trading at 11.5x book value
Smaller company, higher risk/reward
7.6% margin — thin
Revenue declined 5.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : WEN
The strongest argument for WEN centers on P/E Ratio, Return on Equity. PEG of 1.20 suggests the stock is reasonably priced for its growth.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 78.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : WEN
The primary concerns for WEN are Price/Book, Market Cap, Profit Margin.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
SBUX is growing revenue faster at 5.5% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WEN scores higher overall (52/100 vs 39/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
The Wendy’s Co
CONSUMER CYCLICAL · RESTAURANTS · USA
The Wendy's Company, is a quick service restaurant business. The company is headquartered in Dublin, Ohio.
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